Plans to rebuild the Brighton Centre are being looked at by the South East England Development Agency (Seeda).
The Brighton Centre opened on the seafront in 1977
For the past five years, Brighton and Hove City Council has been concerned about the city's future as a conference destination, it said.
Plans are under way to construct an international convention facility that can take 1,500 delegates.
Seeda said the cost was significant and it was exploring options with the council for financing the project.
The Brighton Centre, which is on the famous resort's seafront, opened in 1977 and has hosted concerts by some of the most famous names in music.
It also became one of the UK's main venues for political party conferences.